Elite Transit Solutions, once an up-and-coming Pittsburgh-based freight brokerage with locations in Chicago, Charlotte, and Phoenix, now faces a grim reality.
Good Monday Morning. Today we explore Elite Transit Solution's dramatic downsizing and the truth behind the job cuts. We've also got stories on Maersk's 10,000-position workforce reduction, our attendance at the F3 2023 event, and the reasons behind an Iowa bank's failure amid the trucking downturn. Plus, don't miss our quick takes on a semi's showroom smash-up, and a 4,000 year old delivery gripe.
Today's Newsletter is Brought to You By Rapido.
In today's email:
Three Freight Headlines: Maersk Cuts 10,000 Jobs, F3 2023 Unveils Freight Innovations, and Iowa Bank Fails Due to Trucking Loans.
Elite Transit Solutions: From Elite Growth to Elite Challenges
Around the Freight Web: Amazon generates $66 million per hour, explore a 4,000-year-old shipping gripe, a peek into current trucking business hardships, and more.
Freight Meme of the Day
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🐔 WHAT’S COOKIN’ IN FREIGHT
Matt Silver, the former Founder and CEO of Forager Logistics, commented on Maersk's decision to lay off 10,000 employees. Click on the image to read the full tweet.
🚢 Maersk to Slash 10,000 Jobs Amid Global Trade Turbulence. In response to a dramatic drop in freight rates and a shift in consumer spending, shipping titan Maersk is cutting 10,000 jobs. Profits plummeted from a high of $8.88 billion to $521 million, underscoring a severe industry downturn. The move is part of a larger strategic reset, as the company braces for continued market volatility and a potential overcapacity crisis that could extend into 2025. This restructuring aims to save Maersk $600 million amidst a challenging future for global trade logistics.
🔮 Freight's Future Unpacked at F3 2023. Chattanooga gears up for FreightWaves' F3: Future of Freight Festival from Nov 7-9, where over 70 industry experts, including Brad Jacobs and Alex Epstein, will discuss freight's high-tech horizon. We will be there covering content from across the keynote speakers, educational sessions, and networking events. Attendees will gain insights from leaders like negotiation expert Chris Voss and tech entrepreneur Brian Cristol, complemented by educational showcases of the latest industry products and services. Unable to be there in person? Be sure to catch the live stream.
🏦 Iowa Bank Buckles Under Trucking Crisis. Citizens Bank of Sac City, Iowa, has collapsed, a casualty of the turbulent trucking industry. The small, state-chartered bank was sunk by a portfolio heavy with high-risk trucking loans, leading to a $14.8 million loss. The bank's assets, totaling $66 million, were absorbed by Iowa Trust & Savings Bank, but the fallout is a sign of the wider strife within the freight industry. This incident reveals the risky intersection of local banking and sector-specific lending in a fluctuating market.
TOGETHER WITH RAPIDO
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From Elite Growth to Elite Challenges
Image Source: Elite Transit Solutions
Elite Transit Solutions, once an up-and-coming Pittsburgh-based freight brokerage with locations in Chicago, Charlotte, and Phoenix, now faces a grim reality. Known for its rapid expansion and ambitious growth targets, the company has stumbled into financial trouble, leading to substantial layoffs, according to sources.
Recent Layoffs
October and November of 2023 marked a downturn for Elite, seeing a workforce reduction of 85 employees – 20 in October and an additional 65 on November 3.
The CEO, Michael D. Johnson, delivered this news in a call where he muted employees, denying them a chance for dialogue, a former employee explained. Following the announcement, the workers found themselves abruptly cut off from company computer systems.
Elite Transit Solutions Founder and CEO, Michael D. Johnson. He started the company in April 2013 from his Miami apartment. Image Source: Elite Transit Solutions
Melissa Bucci, the former vice president of people and culture, took to LinkedIn to express her regret at not being able to bid a proper farewell. This sentiment underscored the abrupt nature of the layoffs, which slashed the company's workforce from around 140 at its peak to nearly 10. Bucci's post states:
Today is a sad day for me and most of the ELITE Transit Solutions team as we had to say goodbye to the company that we worked so hard to build. My heart is breaking for the amazing people that made my job extremely rewarding. I'm sorry I didn't have an opportunity to say goodbye.
Growth to Grievance
The situation presents a stark contrast to 2021, when Elite was on a growth spree, opening new locations and planning to hire over 200 employees. Their freight movement doubled, and prospects seemed bright. The company was even recognized as a Inc. 5000 honoreethree years in a row.
However, legal challenges also surfaced in 2021, with the company suing former employees and other firms over trade secret misappropriations and non-compete clauses – a case that further complicated their operations.
Glassdoor & Google Review Critiques
A negative employee review warns of high turnover and unstable work conditions.
A recent Glassdoor review from a former employee stated, "There needs to be a true plan to move forward, and drivers need to get paid. It's a word-of-mouth business."
Recently, most of their Google reviews have been one-star ratings from many trucking company owners frustrated with non-payment.
Broker Alarm
Adding to the distressing signals, a Reddit post by KizerSchwartzAssoc flagged concerns of non-payment to freight haulers, indicating financial troubles may have been brewing for a while.
A post on r/freightbrokeralarms from a law firm offers to help recover unpaid freight charges from Elite Transit Solutions, LLC. The website freightbrokeralert.com also posted a notice about Elite and unpaid dues.
An ex-employee reveals more, saying most calls they got were from truckers desperate for their money, calls that only hit voicemail and never got a real answer.
It even got to the point where factoring companies stopped dealing with Elite, with some taking back money from truckers.
What's Next for Elite Transit Solutions?
The impact of the company's rocky finances have spread far, with payment delays having devastating effects. Some trucking companies had to shut down, with one owner having to sell his business and home.
There has been no recent announcement from Elite regarding any future plans. However, we hope they can reorganize and repay the carriers that are owed.
FACTOR WITH OTR SOLUTIONS
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AROUND THE FREIGHT WEB
💸 Tech Giants' Earnings Power. Jon Erlichman highlights the staggering hourly revenue of leading tech companies like Amazon and Apple, with Amazon earning $66.2 million per hour.
😂 Timeless Customer Complaints. A 4,000-year-old cuneiform tablet at the British Museum reveals an ancient complaint about late and faulty delivery—some things never change.
📉 Trucking Business Woes: Trucking company CEO Ted Johnson shares the harsh reality of trucking business economics, with costs spiraling and profits dwindlingto just $0.05/mile.
🔥 Dealership Disaster: A semi-truck crash in Tooele, Utah, leads to a fire and multiple injuries, with one woman in critical condition, and 27 vehicles damaged.
🚛 Pilot Travel Center Dispute: The Haslam family files a lawsuit against Berkshire Hathaway over the valuation method of their final 20% stake in Pilot Travel Centers.
FREIGHT CONFERENCES WE'RE ATTENDING
Many enterprise shippers will be attending Manifest this February in Las Vegas. Use our link for a $200 discount.
Feb. 5th-7th, 2024: Manifest Vegas, February 5 - 7, 2024, is the world's largest global supply chain & logistics tech event, bringing together Fortune 500 global supply chain executives, logistics service providers, cutting-edge startups, venture investors, and technology leaders. Join 4,500+ supply chain innovators to foster new strategies and relationships. Receive $200 off your ticket with our exclusive link.
FREIGHT MEME OF THE DAY
Also, check out:
🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
☕️ FreightCaviar Fall Essentials: purchase a FreightCaviar sticker, hoodie, long-sleeve, or mug by clicking here.
I’m Adriana, a writer and editor at FreightCaviar. I’ve covered everything from freight tech to industry lawsuits and market shifts, helping scale us to almost 14K subscribers. My goal: to make logistics stories digestible, clear, and fun to read.
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